Exhibit 99.1
Emclaire Financial Corp. Announces First Quarter 2003 Earnings
EMLENTON, Pa.--(BUSINESS WIRE)--April 17, 2003--Emclaire Financial
Corp. (OTCBB:EMCF), the parent holding company of the Farmers National
Bank of Emlenton, reported consolidated net income of $540,000 or
$0.41 per share for the three months ended March 31, 2003. Net income
for the quarterly period increased $57,000 or 11.8%, as compared to
net income of $483,000 or $0.36 per share for the quarter ended March
31, 2002.
During the first three months of 2003, total assets increased $7.4
million or 3.1% to $246.0 million from $238.6 million. Loans
receivable and investment securities remained steady between year-end
2002 and March 31, 2003, while customer deposits increased $6.8
million or 3.3% during the period to $211.3 million at quarter end.
The Corporation remains well capitalized and is positioned for
continued growth with total stockholders' equity at March 31, 2003 of
$23.0 million or 9.4% of total assets.
The Corporation's improved operating results for the quarterly
period can primarily be attributed to increased noninterest income and
a reduction in the provision for loan losses along with the
containment of noninterest expenses as balance sheet growth has
continued.
As market interest rates have declined and remained historically
low, the Corporation has maintained an interest rate spread in excess
of 3.80% on a taxable equivalent basis. Net interest income decreased
slightly between the two quarterly periods as a result of the
collection of $93,000 of interest in the first quarter of 2002 due to
the payoff of a previously non-performing commercial real estate loan.
Excluding consideration of this payment, net interest income would
have increased $48,000 or 2.0% on a taxable equivalent basis. In
addition, in September 2002 the Corporation deployed funds totaling
$4.0 million in bank-owned life insurance where resulting earnings are
classified as noninterest income attributing to the aforementioned
increase in noninterest income.
David L. Cox, Chairman of the Board, President and Chief Executive
Officer, noted that the slight compression in the Corporation's
interest rate spread experienced between the first quarter of 2003 and
2002 has been effectively offset by expansion of the balance sheet as
the volume of earning assets, fueled by continued deposit growth, has
served to stabilize and improve net interest income.
Average interest earning assets increased $16.7 million or 8.0% to
$224.7 million for the three months ended March 31, 2003, compared to
$208.1 million for the same period in the prior year. Average loans
increased $7.1 million or 4.3% to $171.1 million for the first three
months of 2003 versus $163.9 million for the same period in 2002. In
addition, average securities increased $7.5 million or 19.1% to $47.1
million for the first three months of the current year versus $39.6
million in the prior year. The increase in average interest-earning
assets can be attributed to continued loan growth as a result of
steady market demand, particularly with commercial loan products.
Security portfolio growth has been experienced as management seeks to
deploy funds, generated by deposit growth that outpaces loan demand,
into safe, sound marketable securities where optimal yields can be
realized in the current interest rate environment. The yield on
interest earning assets decreased 76 basis points to 6.57% for the
first quarter of 2003 versus 7.33% for the same quarter in 2002.
Increased customer deposits funded loan and security portfolio
growth as average deposits increased $16.1 million or 8.5% to $205.6
million for the three months ended March 31, 2003 versus $189.4
million for the same period in the prior year. The Corporation's cost
of funds decreased 39 basis points to 2.29% for the first quarter of
2003 versus 2.68% for the same quarter in 2002.
The Corporation's asset quality remained strong as nonperforming
loans were $1.3 million or 0.76% of total loans, at March 31, 2003,
compared to $1.2 million, or 0.68% of total loans, at December 31,
2002.
Mr. Cox stated, "The Board of Directors, Senior Management and I
are pleased with the continued positive trend in the Corporation's
earnings. Recent earnings growth has been a direct reflection of
efforts by management and the staff to grow the Bank while offering
superior customer service, monitoring costs, ensuring sound asset
quality and managing the Corporation's asset/liability mix. We remain
committed to providing a sound return to our shareholders through
continued prudent community banking."
Emclaire Financial Corp. is the parent company of The Farmers
National Bank of Emlenton, an independent, nationally chartered,
FDIC-insured community bank headquartered in Emlenton, Pennsylvania,
operating ten full service offices in Venango, Butler, Clarion,
Clearfield, Elk and Jefferson counties, Pennsylvania. The
Corporation's common stock is quoted on and traded through the OTC
Electronic Bulletin Board under the symbol "EMCF". Visit the Bank's
website at www.farmersnb.com.
This news release may contain forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risk and uncertainties which
could cause actual results to differ materially from those currently
anticipated due to a number of factors. Such factors include, but are
not limited to, changes in interest rates which could effect net
interest margins and net interest income, the possibility that
increased demand or prices for the Corporation's financial services
and products may not occur, changing economic and competitive
conditions, technological and regulatory developments, and other risks
and uncertainties, including those detailed in the Corporation's
filings with the Securities and Exchange Commission. The Corporation
does not undertake, and specifically disclaims any obligation to
update any forward-looking statements to reflect occurrences or
unanticipated events or circumstances after the date of such
statements.
EMCLAIRE FINANCIAL CORP. AND SUBSIDIARY
Financial Highlights
(Unaudited - Dollar amounts in thousands, except share data)
CONSOLIDATED OPERATING RESULTS DATA:
Three month
period
ended March 31,
2003 2002
--------------
Interest income $3,544 $3,681
Interest expense 1,217 1,288
--------------
Net interest income 2,327 2,393
Provision for loan losses 75 111
Noninterest income 383 297
Noninterest expense 1,920 1,915
--------------
Net income before provision
for income taxes 715 664
Provision for income taxes 175 181
--------------
Net income $540 $483
==============
Net income per share $0.41 $0.36
Dividends per share $0.21 $0.19
Return on annualized average assets 0.91% 0.90%
Return on annualized average equity 9.55% 9.15%
Yield on average interest-earning assets 6.57% 7.33%
Cost of average interest-bearing liabilities 2.70% 3.16%
Net interest margin 4.38% 4.82%
CONSOLIDATED FINANCIAL CONDITION DATA:
As of As of
3/31/2003 12/31/2002
---------------------
Total assets $246,012 $238,577
Cash and equivalents 15,022 7,716
Securities 47,973 48,748
Loans 169,631 169,557
Deposits 211,250 204,425
Borrowed funds 10,000 10,000
Stockholders' equity 23,024 22,680
Book value per share $17.27 $17.02
Net loans to deposits 80.30% 82.94%
Allowance for loan losses to total loans 0.95% 0.93%
Earning assets to total assets 93.56% 94.68%
Stockholders' equity to total assets 9.36% 9.51%
Shares common stock outstanding 1,332,835 1,332,835
CONTACT: Emclaire Financial Corp.
David L. Cox or William C. Marsh, 724/867-2311